Sebastian Marquez’s daughter is just seven months old. She can’t walk or talk quite yet, but her net worth could be six figures by the time she turns 18.
Finding out his wife was expecting “was one of the best things in life,” says Marquez, who is based in Strathroy, Ontario. Soon after, the 28-year-old — who has been diligently tracking his expenses since 2020 — pulled out his spreadsheets.
In his budget, he added categories for future daycare costs and lifestyle expenses like baby clothes, diapers, infant formula and toys.
Another budget line: $150 a month toward a Canadian government-sponsored Registered Education Savings Plan he opened for his daughter, he says. All figures have been converted from CAD to USD unless otherwise stated.
Like a 529 plan in the U.S., a RESP is a specialized education savings account for parents in Canada that offers tax-free growth on investments. Money from the account must be spent on eligible expenses related to post-secondary education, and instead of offering tax-free withdraws like 529 plans, RESP holders may be eligible for government grants that match contributions up to a certain percentage.
